A Japanese vehicle component manufacturer operates a production facility in Taiwan. For years, a key suspension component used in their assembly line was exclusively imported from Japan. To reduce lead times, lower logistics costs, and build supply chain resilience, they began exploring local sourcing options — and partnered with Yeh Sheng to produce the part domestically using powder metallurgy.
Importing the component from Japan required weeks of shipping, customs clearance, and inventory planning — creating buffer stock costs and slowing responsiveness to demand changes.
Relying on a single overseas source for a critical production component exposed the Taiwan factory to disruption risks — especially from logistics delays, natural disasters, or trade fluctuations.
Any local supplier would need to match the exact material specifications, dimensional tolerances, and performance requirements of the original Japanese-made part — a high bar that few local manufacturers could meet.
Yeh Sheng's engineering team worked closely with the customer to analyze the original Japanese part specifications and develop dedicated PM tooling that replicates the exact geometry, density, and mechanical properties.
Yeh Sheng identified a suitable alternative powder formulation that differs from the original Japanese material but delivers equivalent functional performance. The customer conducted independent testing and approved the locally produced part for production use.
The customer now maintains both Japan-made and Taiwan-made parts as qualified sources. This dual-source strategy provides supply security while enabling gradual transition of volume to local production as confidence grows.
Import substitution through powder metallurgy allowed this manufacturer to localize a critical component without compromising quality. By establishing a qualified local source in Taiwan, they reduced dependency on international logistics, shortened lead times significantly, and gained supply chain flexibility — all while maintaining the exact same part specifications approved by their Japanese headquarters.